Re:“High End” Apartment Construction Creates Mismatch of Sup...
by treis on Saturday October 13, 2018 @10:38AM
(#18208126)
I think this is just a definition issue:
>Discretionary
>Renters by choice. Attracted to the extreme upper end of the apartment market; properties generally of resort quality, clearly appealing to households capable of owning a residence, but choosing to rent, or households with substantial incomes, but without wealth. The luxury rental category primarily focuses on empty nester households, or more particularly, high net worth households. The renter-by-choice household is demanding; finishing detail and amenities included in properties appealing to this category must be of exceptional quality.
>A+ / A
>High Mid-Range
>"Lifestyle renters." The high mid-range category appeals to double-income-no-kids ("DINK") households holding income status similar to that typically required of discretionary property positioning, but not in possession of the wealth more probably associated with the renter-by-choice rental household category. Properties holding high mid-range status typically offer excellent finishing quality, and attractive common area facilities, and typically focus on an environment providing a more social experience.
>A- / B+
>Low Mid-Range
>Working professionals. The low mid-range household is typically composed of working professional, “gray collar” households (i.e. policemen, firemen, teachers, technical workers). These households, while renters-of-necessity, are inclined to apply some discretion regarding rental environment quality, and will opt for “adequate” quality of improvements offering reasonably attractive amenities in a good/convenient location.
They count anything in the high mid-range or above as "luxury" when clearly it's not. Anything below Low Mid-Range has "older" as part of it's description, so obviously no new construction will be placed there.
In my market the new apartment complexes are almost exclusively 2 bedrooms or less. They are very clearly for those with disposable income and no kids. Those that don't fit into that category move a little bit out and rent townhomes/single family homes.
>Discretionary
>Renters by choice. Attracted to the extreme upper end of the apartment market; properties generally of resort quality, clearly appealing to households capable of owning a residence, but choosing to rent, or households with substantial incomes, but without wealth. The luxury rental category primarily focuses on empty nester households, or more particularly, high net worth households. The renter-by-choice household is demanding; finishing detail and amenities included in properties appealing to this category must be of exceptional quality.
>A+ / A
>High Mid-Range
>"Lifestyle renters." The high mid-range category appeals to double-income-no-kids ("DINK") households holding income status similar to that typically required of discretionary property positioning, but not in possession of the wealth more probably associated with the renter-by-choice rental household category. Properties holding high mid-range status typically offer excellent finishing quality, and attractive common area facilities, and typically focus on an environment providing a more social experience.
>A- / B+
>Low Mid-Range
>Working professionals. The low mid-range household is typically composed of working professional, “gray collar” households (i.e. policemen, firemen, teachers, technical workers). These households, while renters-of-necessity, are inclined to apply some discretion regarding rental environment quality, and will opt for “adequate” quality of improvements offering reasonably attractive amenities in a good/convenient location.
https://www.yardimatrix.com/About-Us/Our-Methods/How-We-Defi...
They count anything in the high mid-range or above as "luxury" when clearly it's not. Anything below Low Mid-Range has "older" as part of it's description, so obviously no new construction will be placed there.
In my market the new apartment complexes are almost exclusively 2 bedrooms or less. They are very clearly for those with disposable income and no kids. Those that don't fit into that category move a little bit out and rent townhomes/single family homes.